HS Code:
This category pertains to specific articles that are products of China, classified under subdivision (j) of U.S. note 31 to the relevant subchapter of the Harmonized Tariff Schedule (HTS). Effective with respect to entries on or after January 1, 2025, these articles are subject to specific tariff treatments and trade regulations as outlined by U.S. trade policy. This classification often relates to goods impacted by Section 301 tariffs or other trade remedies targeting Chinese imports, potentially covering a wide range of products such as electronics, machinery, or consumer goods, depending on the specific HTS code. The policies aim to address trade imbalances, intellectual property concerns, and unfair trade practices.
Total Trade Volume
USD 550 billion (estimated for affected categories under Section 301)
Data from 2023 (based on latest comprehensive data)
Source
U.S. International Trade Commission (USITC) and U.S. Customs and Border Protection (CBP)
USD 427 billion
77.6% of total trade in affected categories of total trade
Decreasing due to tariffs and supply chain diversification
USD 38 billion
6.9% of total trade in affected categories of total trade
Increasing due to supply chain shifts
USD 25 billion
4.5% of total trade in affected categories of total trade
Increasing as an alternative to China
USD 20 billion
3.6% of total trade in affected categories of total trade
Stable with minor growth
USD 15 billion
2.7% of total trade in affected categories of total trade
Increasing due to manufacturing incentives
Average Rate
25% additional tariff under Section 301 (varies by specific HTS code)
Highest Rate
25% on select categories like electronics and industrial goods
Lowest Rate
7.5% on certain consumer goods under temporary exemptions
Supply Chain Diversification
Significant shift of manufacturing to Southeast Asia and Latin America to avoid U.S. tariffs on Chinese goods, reducing China's market share.
2020-2023
Rising Production Costs in China
Increased labor and compliance costs in China have pushed companies to relocate production, impacting trade volumes in affected categories.
2021-2023
Growth in Nearshoring
U.S. companies are increasingly sourcing from Mexico and Canada under USMCA to mitigate tariff risks, affecting long-term trade patterns.
2022-2023
The U.S. Trade Representative (USTR) announced the continuation of Section 301 tariffs on Chinese imports into 2025, with periodic reviews for exemptions on specific products.
September 2023
Maintains high tariff barriers for Chinese goods, encouraging further supply chain diversification.
USTR initiated a public comment period for potential modifications to tariff rates and coverage under subdivision (j) of U.S. note 31, effective January 1, 2025.
October 2023
Could lead to revised rates or exemptions, influencing import strategies for affected goods.
U.S. CBP heightened enforcement actions to prevent transshipment of Chinese goods through third countries to evade tariffs.
July 2023
Raises compliance costs and delays for importers, potentially reducing trade volume from China.